Most developers tend to ask for dispensations

JAKARTA (JP): Governor Surjadi Soedirdja said developers' constant desire to get facilities from the city, like being allowed to pay fees in installments, would hamper public services.

He said while many developers had yet to complete their obligations to provide public facilities, they kept asking for such dispensations.

Surjadi was speaking at the opening of the first phase of the Kalilio renovation project in Senen Triangle, Central Jakarta.

"By paying fees in installments, the developers slow down the municipality's service to people. This should not happen," Surjadi said.

He said by not immediately fulfilling their public obligations, the developers could 'enjoy themselves', while people could not enjoy anything.

"Developers should fulfill their obligations, not for the municipality's benefit, but for the public's," Surjadi said.

He said the administration would not hesitate to take stern action against developers who were not willing to abide by existing regulations.

Based on gubernatorial decree No. 540/1990, private developers are obliged to build social and public facilities, including school buildings, places of worship and parks.

Developers failing to meet these obligations face punishment, including city refusal to process building permit applications.

Last year, Council Speaker M.H. Ritonga said at least 77 developers owe public facilities worth Rp 600 billion to the city, since the rule came into effect in 1990. The facilities should be handed over to the municipality as city property.

Kalilio

The project officiated yesterday was related to the renovation of 3.8 hectares in the Kalilio area, a city program to upgrade the Senen subdistrict in Central Jakarta.

The Kalilio subdistrict now has three apartment towers, including a service apartment building, and an office tower. The 157 fully serviced apartments will be managed by Allson International Hotels and Resorts of Hong Kong.

After its completion, the whole complex, namely the Mitra Oasis complex, will have three apartment towers, two office towers and a three-star hotel.

Renovation of the former slum area first started in 1983 by a private developer, but was then transferred to the city-owned construction company PD Pembangunan Sarana Jaya in 1985.

Sarana Jaya then cooperated with a private developer, PT Sumber Mitrarealtindo, to renovate Kalilio.

Land appropriation for the project, which affected 686 families, lasted from May 1991 to September 1992.

Families affected by the project were given Rp 10 million each for their land. "Total land compensation paid was Rp 38 billion," Sumber Mitra's president, Yan Mogi, said.

Total investment of the entire project, scheduled for completion by the end of next year, is estimated to be Rp 350 billion, he said.

After Surjadi had left, Yan said his company has developed required public facilities, such as building streets, repairing a mosque at the project's site and constructing an elementary school in Pulogebang in East Jakarta.

Central Jakarta Mayor Abdul Kahfi said developers faced difficulty in building facilities at project sites where land was expensive. (ste)